LAHORE: The government has announced a significant amendment to the Import Policy Order (IPO), 2022, raising the mileage limit for imported new cars. Previously capped at 500 kilometers, the threshold for what constitutes a “new vehicle” has now been extended to 2,000 kilometers.
This change aims to minimize the detention of imported vehicles by Customs at ports, according to sources from the Commerce Ministry.
The revision was prompted by concerns raised by vehicle importers who have repeatedly faced issues with the original 500-kilometer limit.
These constraints often led to the holding of vehicle consignments at ports for exceeding the stipulated mileage, affecting the import process.
Under the updated provisions of the IPO, a “new vehicle” is defined as one that is manufactured within the 12 months preceding its importation date, has not been registered, and has been driven no more than 2,000 kilometers before its import.
The decision to adjust the mileage criteria came after deliberations by the Cabinet Committee for Relaxation of Import/Export-related Prohibitions.
Recognizing the challenges importers encountered with vehicles accruing over 500 kilometers in transit from manufacturing sites or warehouses to ports, the Committee recommended the amendment for a one-time condonation of extra mileage.
The Economic Coordination Committee (ECC) of the Cabinet, upon reviewing the Ministry of Commerce’s proposal on February 14, 2024, approved the amendment.
The Federal Cabinet subsequently endorsed this decision, signaling a shift in policy designed to streamline the importation process for new vehicles and alleviate the procedural bottlenecks at customs.
